6. What is PLR?
Prime Lending Rate is the interest rate charged by banks to their most credit-worthy or favoured customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. The banks are at liberty to lend at a rate above or below the PLR. The PLR is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate. The rates reported below are based upon the prime rates on the first day of each respective month. Some banks use the name "Reference Rate" or "Base Lending Rate" to refer to their Prime Lending Rate. It is treated as a benchmark rate for most retail and term loans.
